Harmonic Inc (HLIT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.77% | 50.96% | 51.78% | 54.23% | 57.79% |
| Operating profit margin | 3.67% | 7.34% | 3.75% | -3.46% | 3.39% |
| Pretax margin | 3.17% | 7.18% | 1.77% | -7.29% | -1.71% |
| Net profit margin | 13.91% | 4.55% | 2.64% | -8.14% | -1.54% |
Harmonic, Inc.'s profitability ratios show fluctuations over the past five years. The gross profit margin has been relatively stable, ranging around the 50-55% mark, indicating consistency in managing production costs. However, there has been a noticeable decline in the operating profit margin from 2019 to 2022, with a notable negative figure in 2020, suggesting operational efficiency challenges during this period.
The trend in the pretax margin reflects a similar pattern, with fluctuations in profitability before taxes. The company experienced significant losses in 2020 and 2019, followed by a gradual recovery in profitability in 2021 and 2022. Notably, the pretax margin more than doubled from 2021 to 2022, indicating improved financial performance.
The net profit margin, representing the company's bottom line profitability, has been erratic, with negative figures in 2019 and 2020, indicating challenges in generating profits after accounting for all expenses. However, there was a significant improvement in 2021 and a notable increase in 2023, suggesting effective cost management and revenue generation.
Overall, Harmonic, Inc. has shown mixed performance in terms of profitability ratios, with improvements in recent years. The company needs to maintain operational efficiency and continue its efforts to enhance profitability for sustained financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.89% | 6.41% | 2.71% | -2.10% | 2.23% |
| Return on assets (ROA) | 10.93% | 3.97% | 1.91% | -4.95% | -1.01% |
| Return on total capital | 4.88% | 13.56% | 4.78% | -3.70% | 1.48% |
| Return on equity (ROE) | 19.23% | 8.68% | 4.48% | -11.33% | -2.35% |
Harmonic, Inc.'s profitability ratios demonstrate varying performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, with a significant increase from 2021 to 2022 followed by a decrease in 2023. This ratio reflects the company's ability to generate operating income from its assets.
2. Return on assets (ROA) shows a similar pattern, with a notable improvement in 2023 compared to previous years. ROA indicates the company's overall efficiency in generating profits from its total assets.
3. Return on total capital demonstrates a similar trend to ROA, with a peak in 2022 and a subsequent decline in 2023. This ratio measures the company's ability to generate returns for all capital invested, including debt and equity.
4. Return on equity (ROE) shows a steady improvement from 2019 to 2023, indicating better profitability relative to shareholders' equity. ROE reflects the company's ability to generate profits for its shareholders.
Overall, Harmonic, Inc. has shown improved profitability in recent years, as evidenced by the increasing trends in ROA and ROE. However, fluctuations in operating return on assets and return on total capital suggest the company may need to focus on optimizing its operational efficiency and capital management strategies.